Expressed more precise referring to a lifestyle analysis the target segments
are ranging from modern mainstream, traditional working class, traditional
mainstream to upper conservative. It has always been the core of the Wide-bottom
philosophy to target an entire already established and rather mature market, in
which it is possible to gain a small market share with the high profile of the
Wide-bottom brand name. Competitor targets Alongside decisions regarding target
markets lie judgements about competitor targets. The analysis of how industry
structure affects long-run profitability has shown the need to understand and
monitor competitors. The key to superior performance is to gain and hold a
competitive advantage. Firms can gain a competitive advantage through
differentiation of their product offering which provides superior customer value
or by managing for the lowest delivery cost. The right strategic focus for the
Wide-bottom Group concerning competitor target would be to try to win market
share as the jeans market is in its mature state and cannot be expanded. This
strategy implies gaining marketing success at the expense of the competition.
Wide-bottom should seek to win market share through promotional innovation and
penetration pricing. If Wide-bottom carries out a frontal attack towards the
market leaders its advantage will be based on cost leadership which will support
a low price strategy to fight the market leader.
Furthermore success is more likely if there is some restriction on the
leader’s ability to retaliate. Restrictions include pride, inflexibility and
high advertising costs and technologic advantage. All market leaders in the
jeans market have high expenditure on advertising and promotion which they off
load on the customer. As Wide-bottom generally does not run highly expensive
advertising campaigns it would not have this disadvantage, it could offer jeans
to a far better price than competition. Concerning promotional innovation,
Wide-bottom would not need to open new shops, as it could sell and promote the
jeans in its existing record shops. Finally, the challenger, in this case the
Wide-bottom group, needs adequate resources to withstand the battle that will
take place should the leader retaliate. Wide-bottoms cash cow which has to
provide the money for all new investments is its airline, Wide-bottom Atlantic.
This will enable the group to withstand major competitor attacks. Competitive
Advantage Competitive advantage will be obtained through lower prices for a good
quality product. This can be achieved by the Wide-bottom Group through a cost
advantage in terms of already established brand name partly established
distribution channels and a high bargaining power. Competitive advantage will
also be achieved through being able to respond quicker to customer needs.
Through building small business, units a closer relationship with the customer
can be established, thus representing a serious “weapon against the economies of
scale and scope of the major competitors in the market.
A very advanced IT system will improve the flow of communication between
distributors, manufacturer, head office and customer. Marketing Mix Decision The
sales will take place in the Mega stores owned by Wide-bottom and in retail
stores with a good reputation like Foleys and Dillards. The fight for shelf
space will clearly be won by Wide-bottom because of its established reputation
and brand name. When these principles can be realized a solid average jeans at a
very attractive price will be the result. The jeans will be available in two
main lines: for men and for women. These will have slightly different cuts but
still correspond to the classic five pocket style. The material in use will be
denim and for the beginning there will only be two basic colours which will be
different kinds of blue and black. Implementation The near future does not seem
to have major external positive or negative surprises. It is therefore unlikely
that strategies and objectives have to be redefined.
